Replies to post #87893 on Plastic2Oil Inc (PTOI)

[umiak]

Posted by: BeerIsGood
In reply to: the big guy who wrote msg# 69187 Date:9/9/2010 11:19:53 PM
Post #69204 of 87910

The whole thing is based on a simple premise: make oil for $10/barrel and sell for $70/barrel. That likely is NOT REALISTIC.

Seems realistic to me.

My estimated Cost for a JV site

Initial Processor Cost $200,000
Engineering $50,000 (don't think this will be needed but added anyways)
Legal / Professional Fees / Permits $20,000
Initial Setup of Processor(Site Development/Rigging/Assembly) $75,000
Feedstock Hoppers $10,000
Shredder & conveyors (New) $80,000
Gas compression system $75,000
Natural Gas Generator $50,000
Front End Loader for moving piles of Feedstock(used) $20,000
Forklift(used) $10,000
Fire Suppression system(if needed) $40,000
Safety barriers for containing spills(fabricated concrete walls if needed) $20,000
Unknowns $100,000

TOTAL $750,000(add land/building and your at about $1 million investment)
Monthly loan payment for 80% of the $750K: $600,000 spread out 10 years at 8% = $7,300

Estimated Monthly Expenses
Loan Payment - $7,300
Property Taxes & Insurance $1,500
Utilities $1,000
Maintenance $1,000
Phone's, Internet(all office stuff) $500
Manager, Office help, etc. $6,000 ($72K/year)
2 hourly employees: 30 days, 10 hours/day, $25/hour $15,000

Total estimated monthly expenses = $32,300
John B. claims 108 barrels a day X $10/barrel to manufacture X 30 days/month = $32,400 monthly expenses

Add a second processor or run the one processor (2) 10 hour shifts and the numbers look a whole lot better.